Real Money

In trading on Wednesday, shares of Federal Agricultural Mortgage Corp's 6.875% Non-Cumulative Preferred Stock, Series B were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.7188), with shares changing hands as low as $26.17 on the day. This compares to an average yield of 5.67% in the "Financial" preferred stock category, according to Preferred Stock Channel.

In trading on Wednesday, shares of Federal Agricultural Mortgage Corp's 6.875% Non-Cumulative Preferred Stock, Series B ( AGM.PRB) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.7188), with shares changing hands as low as $26.17 on the day. This compares to an average yield of 5.67% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, AGM.PRB was trading at a 6.00% premium to its liquidation preference amount, versus the average premium of 2.33% in the "Financial" category. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.

The chart below shows the one year performance of AGM.PRB shares, versus AGM:

In Wednesday trading, Federal Agricultural Mortgage Corp's 6.875% Non-Cumulative Preferred Stock, Series B ( AGM.PRB) is currently down about 0.9% on the day, while the common shares ( AGM) are down about 1.7%.